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Last updated on April 18, 2014 at 11:16 EDT

Ceragon Networks Secures $73.5 Million Credit Facility

March 14, 2013

New facility replaces existing credit agreements

PARAMUS, New Jersey, March 14, 2013 /PRNewswire/ –

Ceragon Networks Ltd. (NASDAQ: CRNT), the #1 wireless backhaul specialist, today
announced the closing of a three year $73.5 million of secured credit loans with an
additional credit of up to $40.2 million available for bank guarantees, from a group of
lenders led by Bank Hapoalim B.M.. The loans under the credit facility are expected to be
used by Ceragon to manage fluctuating working capital needs, mainly related to the
deployment of its equipment at tier 1 operators and for general corporate purposes.

The new credit facility will bear floating interest at a base rate plus an applicable
spread of up to 3% per annum (3 month Libor plus 3.3% as of March 14). The new credit
facility is secured by a floating charge over all the Company’s assets and a fixed lien
over its bank accounts at the lending institutions.

The credit facility replaces all of the Company’s existing credit facilities,
including the loan agreement with Bank Hapoalim B.M. entered into in 2011, and other short
term credit facilities with other banks. At December 31, 2012, Ceragon had $26.8 million
of long term debt, including current maturities, as well as $17 million drawn down from
the previous credit facilities, which totaled $40 million.

“We are pleased with the successful completion of this credit facility, which provides
several advantages over our prior credit agreements. The new credit facility consists of
amounts larger than the previously available credit line, is fully-committed for three
years, with financial covenants that are less stringent and bears interest at
approximately the same rate,” said Aviram Steinhart, EVP and CFO of Ceragon. “In addition,
under the terms of the agreement, the amounts we repay on the longer term loan taken in
relation to the Nera acquisition, will immediately become available credit for our working
capital needs under the new facility. We believe this will provide the necessary
flexibility to successfully manage the fluctuations in working capital inherent in our
business model.”

About Ceragon Networks Ltd.

Ceragon Networks Ltd.(NASDAQ: CRNT) is the #1 wireless backhaul specialist. We provide
innovative, flexible and cost-effective wireless backhaul solutions that enable mobile
operators and other wired/wireless service providers to deliver 2G/3G, 4G/LTE and other
broadband services to their subscribers. Ceragon’s high-capacity, solutions use microwave
technology to transfer voice and data traffic while maximizing bandwidth efficiency, to
deliver more capacity over longer distances under any deployment scenario. Based on our
extensive global experience, Ceragon delivers turnkey solutions that support service
provider profitability at every stage of the network lifecycle enabling faster time to
revenue, cost-effective operation and simple migration to all-IP networks. As the demand
for data pushes the need for ever-increasing capacity, Ceragon is committed to serve the
market with unmatched technology and innovation, ensuring effective solutions for the
evolving needs of the marketplace. Our solutions are deployed by more than 430 service
providers in over 130 countries.

Ceragon Networks(R) is a registered trademark of Ceragon Networks Ltd. in the United
States and other countries. CERAGON(R) is a trademark of Ceragon Networks Ltd., registered
in various countries. Other names mentioned are owned by their respective holders.

This press release may contain statements concerning Ceragon’s future prospects that
are “forward-looking statements” under the Private Securities Litigation Reform Act of
1995. These statements are based on current expectations and projections that involve a
number of risks and uncertainties. There can be no assurance that future results will be
achieved, and actual results could differ materially from forecasts and estimates. These
are important factors that could cause actual results to differ materially from forecasts
and estimates. Some of the factors that could significantly impact the forward-looking
statements in this press release include the risk of significant expenses in connection
with potential contingent tax liability associated with Nera’s prior operations or
facilities, risks associated with increased working capital needs, and other risks and
uncertainties, which are discussed in greater detail in Ceragon’s Annual Report on Form
20-F and Ceragon’s other filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date on which they are made and Ceragon
undertakes no commitment to revise or update any forward-looking statement in order to
reflect events or circumstances after the date any such statement is made. Ceragon’s
public filings are available from the Securities and Exchange Commission’s website at
http://www.sec.gov or may be obtained on Ceragon’s website at http://www.ceragon.com

        Company and Investor Contact:
        Yoel Knoll
        Ceragon Networks Ltd.
        Tel. +1 (201)-853-0228
        yoelk@ceragon.com

        Media Contact:
        Abigail Levy-Gurwitz
        Ceragon Networks Ltd.
        Tel: +1-(201)-853-0271
        abigaill@ceragon.com

        Media Contact:
        Karen Quatromoni
        Rainier Communications
        Tel. 508-475-0025 x150
        kquatromoni@rainierco.com

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SOURCE Ceragon Networks Ltd


Source: PR Newswire